Taxpayers will fork out £6.3 billion in Christmas taxes this year
- As millions of Brits hit the shops today, research shows how the treasury rakes in billions in Christmas taxes
- These taxes add an extra 18% to the cost of Christmas, as the taxman squeezes every penny from families
- This Christmas, a UK household will pay an average of £241 in tax for their festive spending. This is enough to buy 20 luxury Lidl Christmas puddings.
- Christmas trees, children's toys and dessert wines are just some of the items Brits are paying high taxes on
With rising inflation and the first interest rate rise in more than 10 years, many households in the UK are struggling with the cost of living. Despite this pressure on finances, households in the UK still intend to enjoy the festive season. Research from Deloitte reveals that the average UK consumer intends to spend £544 this Christmas which is an increase of 1.8 per cent from last year and 38 per cent more than the European average. Consumers in the UK spend the second highest amount in Europe, with only Spanish consumers spending more on Christmas.
Key findings
- This Christmas, a UK household will pay an average of £241 in tax for their festive spending. This is enough to buy 20 luxury Lidl Christmas puddings.
- The total Christmas tax bill will come to £6.3 billion.
- The average household will spend £1,355 on Christmas gifts, travel, socialising and alcohol.
Table 1: tax charged on popular Christmas gifts and essentials
Item | Price (£) | Tax charged (£) |
iPhone X | 999 | 199.8 |
PlayStation 4 bundle | 229.99 | 45.99 |
Chanel No 5 Parfum 15ml | 142.2 | 28.44 |
Lego Star Wars: BB-8 | 130 | 26 |
John Lewis Fireside Christmas Tree, 6ft & tree decorations | 120 | 24 |
FurReal Roarin’ Tyler | 99.99 | 19.99 |
Hatchimals Surprise | 67.98 | 13.6 |
Paw Patrol Sea Patroller | 61.98 | 12.4 |
Santa Suit | 49.99 | 9.99 |
Laser X – 2 player pack | 45 | 9 |
John Lewis Luxury Christmas Crackers | 40 | 8 |
Travel (average 302 miles) | 37.62 | 24.14 |
Moet & Chandon Champagne | 35 | 9.29 |
Courvoisier V.S. Cognac | 35 | 18.08 |
Enchantimals Playframe Panda Set | 29.99 | 5.99 |
Christmas Wreath | 28 | 5.6 |
Nerf Nitro Longshot Smash | 19.99 | 3.99 |
Astrolabe Awatere Valley Sauvignon Blanc | 14.99 | 4.97 |
Taylor’s Port | 10 | 5.59 |
Harvey’s Bristol Cream Sherry | 9.5 | 5.03 |
Mistletoe | 9.45 | 1.89 |
Las Cometas Shiraz Reserva | 8.5 | 3.68 |
Commenting on the figures, John O'Connell, chief executive of the TaxPayers' Alliance, said:
"Every year taxpayers work hard and save so they can enjoy the Christmas break with their families, but HMRC makes it increasingly difficult to do so. Santa had better watch out that his sleigh isn't next in line for a hefty levy. The taxman should stop playing Grinch and leave us a bit more for our Christmas stockings."
"Every year taxpayers work hard and save so they can enjoy the Christmas break with their families, but HMRC makes it increasingly difficult to do so. Santa had better watch out that his sleigh isn't next in line for a hefty levy. The taxman should stop playing Grinch and leave us a bit more for our Christmas stockings."
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Chloe Westley, Campaign Manager
TaxPayers’ Alliance
55 Tufton Street, London, SW1 3QL
24-hour media line: 07795 084113 (No texts)